BND - Consumer Inflation Rose Over 7% In January; What Should Investors Consider Going Forward?

• Inflation is persisting, with the Fed having made clear plans to dial back monetary policy to deal with it.
• While the language of it being transient is being retired, we continue to believe that this is a supply side problem that hasn't been given a chance to resolve itself.
• Shortages are persistent across supply chains that are the obvious cause of meaningful appreciation in price levels.
• It takes two years for relevant actors to increase capacity, if inflation persists beyond then that's when we'll worry deeply about the economy and markets.

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